Betfair Closes UK Affiliate Program
Betfair, a prominent player in the gambling industry and part of the Flutter Entertainment Group, has officially announced the discontinuation of its affiliate marketing program in both the UK and Ireland. This strategic pivot reflects the company’s desire to streamline domestic operations and prioritize growth in global markets. Notably, the international affiliate program will remain unaffected, continuing to foster partnerships worldwide.
In a communication directed to partners, the operator outlined that the decision stemmed from “a series of changes to the UKI market and an increasingly complex regulatory landscape.” The affiliate program will officially wind down on July 1st of this year, marking a significant shift in Betfair’s operational framework.
Flutter Entertainment disclosed that it allocates over €100 million annually to ensure compliance and uphold responsible gambling practices through its UK-based brands, including Betfair, Paddy Power, Sky Bet, and Tombola. In the fiscal year of 2024, the company contributed approximately £680 million to the UK government in various forms, including corporate tax, gaming duties, VAT, and employment levies, illustrating the substantial footprint of its domestic activities.
Previously, affiliates participating in the program could earn between 25-35% of net revenue from referrals, with Cost Per Acquisition (CPA) deals ranging from £25 to £60 per new customer. This was part of Betfair’s broader efforts to incentivize partnerships and drive customer engagement.
Focused Expansion into Global Markets
As the UK faces increasing regulatory scrutiny and tax obligations, Flutter is directing its attention towards emerging global markets. One key target is Brazil, where recent regulatory advancements in gambling offer lucrative opportunities. Betfair Brazil’s merger with BetNacional has created Flutter Brazil, positioning the company to capitalize on this nascent market.
Additionally, Flutter has experienced remarkable success in the U.S. market, primarily through its sportsbook, FanDuel. In the latest quarter, FanDuel generated $1.67 billion in revenue, solidifying its leadership in the sector. Flutter anticipates that the U.S. market will contribute nearly 50% of its projected profit, expected to reach approximately $2.4 billion by 2027.
Peter Jackson, CEO of Flutter, remarked, “FanDuel continues to excel in the U.S., maintaining leadership positions in both online sports betting and iGaming. Our international performance has also been strong, enhanced by the acquisition of Snai in Italy, which amplifies our competitive advantages through the Flutter Edge.”
Flutter’s acquisition of Snai from Playtech for €2.3 billion ($2.6 billion) has further solidified their presence in the Italian betting market, where they now command around 30% following their previous acquisition of Sisal in 2021.
Exploring the Potential of Betfair in the U.S.
As prediction markets rise in prominence across the U.S., there is ongoing speculation regarding the potential expansion of Betfair’s operations into this market. Jackson emphasized the company’s expertise in this space, stating, “We operate the world’s largest sports betting exchange. Our extensive experience with the Betfair Exchange gives us valuable insights into how markets can evolve.”
He elaborated, “There exists a unique opportunity in states that have not yet implemented regulation, reminiscent of initial daily fantasy sports (DFS) developments. While DFS effectively laid the groundwork for products like parlays, prediction markets still present a tantalizing, albeit limited, opportunity.”
Kalshi has emerged as a key player within the U.S. prediction market landscape, leveraging recent legal victories to attract attention from other betting brands eager to explore this burgeoning segment.
As the gambling industry continues to evolve rapidly, Betfair’s strategic decisions will play a pivotal role in shaping its future trajectory, both domestically and internationally.
Author: Adam Roarty
Adam Roarty is a seasoned writer with extensive experience in the gambling sector. His portfolio includes work with reputable platforms such as Oddschecker, CoinTelegraph, and Gambling Industry News, granting him deep insights into sports betting and online gambling trends.
